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Questions and Answers
What is the formula for calculating the closing balance?
What is the formula for calculating the closing balance?
- Total cash inflow - fixed costs
- Opening balance - net cash flow
- Total revenue + total cash outflow
- Opening balance + net cash flow (correct)
What is the relationship between total revenue and quantity sold?
What is the relationship between total revenue and quantity sold?
- Total revenue is equal to quantity sold divided by selling price.
- Total revenue is always less than the total costs.
- Total revenue is calculated by multiplying selling price by quantity sold. (correct)
- Total revenue is independent of quantity sold.
Which of the following correctly defines total cost?
Which of the following correctly defines total cost?
- Total cost = fixed costs - total variable costs
- Total cost = total cash inflow - total cash outflow
- Total cost = selling price x total revenue
- Total cost = fixed costs + total variable costs (correct)
If total cash inflow is $5000 and total cash outflow is $3000, what is the net cash flow?
If total cash inflow is $5000 and total cash outflow is $3000, what is the net cash flow?
What is the correct expression for net cash flow?
What is the correct expression for net cash flow?
Flashcards
Net cash flow
Net cash flow
The difference between the total amount of cash received and the total amount of cash paid out during a specific period.
Closing balance
Closing balance
The final amount of cash remaining after all cash transactions have been accounted for.
Total revenue
Total revenue
The total income generated from selling goods or services. Calculated by multiplying the selling price by the number of units sold.
Total cost
Total cost
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Study Notes
Net Cash Flow Calculation
- Net cash flow is calculated by subtracting total cash outflow from total cash inflow.
Closing Balance Calculation
- Closing balance is determined by adding the net cash flow to the opening balance.
Revenue Calculation
- Total revenue is found by multiplying the selling price by the quantity sold.
Cost Calculation
- Total cost is the sum of fixed costs and total variable costs.
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Description
Test your knowledge on essential finance concepts, including net cash flow, closing balance, revenue, and cost calculation. This quiz will help you understand how to evaluate cash flow and determine the financial health of a business.
